Walmart on Thursday raised its sales and profit outlook for the year saying consumer spending has "remained resilient" after seeing a boost in its grocery and e-commerce business.
"We continue to gain market share in the grocery category, including with higher income and younger shoppers," Walmart CEO Doug McMillon told analysts on the company's first-quarter earnings call Thursday.
During the three-month period ending in April, the nation's largest retailer noticed a shift in U.S. sales mix from general merchandise to grocery and health and wellness as consumers prioritize purchases in the face of persisting inflation.
Meanwhile, the company also saw strong growth in e-commerce, which rose 27% in the U.S. Globally, e-commerce sales rose 26%, up from 17% in the previous quarter.
McMillon said the higher mix of sales in the food and consumables categories negatively affected gross profit due to the fact that both categories have a lower margin than general merchandise.
Still, its operating profit grew 17.3% during the period. Revenue for the quarter rose 7.6% to $152.3 billion, topping estimates.
Walmart now expects that consolidated net sales will be up 3.5%, higher than the previous guidance of 2.5% to 3%. The retailer also projects that per-share results for the year will be $6.10 to $6.20, up from the previous range of $5.90 to $6.05.
Meanwhile, rival retailer Target reported another quarterly profit decline on Wednesday. Its first-quarter net income slipped nearly 6% to $950 million, or $2.05 per share, for the three-month period ended April 29.
|HD||THE HOME DEPOT INC.||292.70||+0.66||+0.23%|
Sales rose 0.6% to $25.32 billion in the quarter, up from $25.17 billion in the year-ago quarter.
Home Depot, the nation’s largest home improvement retailer, reported that its sales for the quarter slipped, down 4.2%, as its DIY and pro shoppers become more cautious.
It expects its first annual revenue decline since 2009.
The Associated Press contributed to this report.